IT. You have been provided the following data on the securities of three rms and the market: Security Elil "j PjM j Firm A {1.13 .12 ? .EH] Firm B ".15 T {1.41} 1.1ll Firm C {1.25 (1.24 il.'.i"5 'i" Market 0.15 (1.11.) 1' 'i' Risk-free [HIE '? T ? Assume the CAPM holds true. a. Fill in the missing values in the table. h. 1What is your invesunent recommendation on each asset? Buy or sell? c. Suppose that you are currently holding a portfolio counting of Firm B only. If you increase your portfolio weight on Firm B by 0.2 {or 211%} and borrow the needed money at the risk-free rate, what will he the new standard deviation of your portfolio? 3. Consider a market where two risk factors are sufficient to describe the returns on common stock. The following table gives the sensitivities of the stocks of ABC inc. and PQR Inc. to the two factors, as well as their expected relurns. (i) Consider a portfolio, (I, made up by selling short $Il.5ll of security PQR and Purchasing $1.51] of ABC with the proceeded and with $1.11!!! of your own money in portfolio (3. How sensitive will this portfolio he to each of the two factors